Saudi Oil Minister Questions Need for Additional Barrels

Saudi Arabian Oil Minister Ali Naimi said Saturday that he backed an increase in OPEC’s production ceiling but questioned whether demand justified adding actual oil to the market.

Speaking at a press conference here after meeting Norwegian Oil and Energy Minister Thorhild Widvey, Naimi said raising the ceiling is “reasonable.”

Naimi flies Monday to Vienna ahead of an Organization of Petroleum Exporting Countries meeting Wednesday.

At that meeting, a 1.8% increase in the group’s production ceiling to 28 million barrels a day is likely, but that merely brings the paper limit in line with the group’s actual current production.

Naimi said the kingdom is currently pumping 9.5 million barrels a day in June: “That’s what is needed by customers. That’s what they are asking for. They are not asking for 10 million barrels a day,” he said, adding: “There is no shortage of supply.”
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